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What is Mortgage Loan Servicing?

As anyone who has ever bought a home can tell you, the process doesn’t end once you sign on the dotted line. After your loan closes, you begin to pay it back. That’s where loan servicing comes into play.

Mortgage loan servicing is the management of your home loan after it closes. One of the primary functions of a loan servicer is collecting the monthly payments.

“Your servicer will work with you each month to send you your monthly bills, collecting your payments,” said Kevin Ramirez, senior vice president of sales training at New American Funding. “And on top of that, they also do extra services like possibly paying your taxes and insurance for you if you chose to do what they call an escrow account.”

Your servicer may also be able to help if you are facing an economic hardship. Ramirez advises borrowers to reach out to their servicer to see if they are facing financial issues, so they can work together to find a solution.

Kevin Ramirez NMLS # 104026